College Saving 101

With kids and grandkids heading back to school, it’s time to start thinking about that college fund again. Saving for college can be a daunting task, but Senior Advisor Lonny Greenberg breaks down the best strategies for fitting saving for education into your financial plan.

The most popular choice for education savings is a 529 plan. 529 plans are investment vehicles that enables investors to save their money tax-free, as long as it is used for educational purposes. They are flexible: 529 plans can be used for any educational expense and can be transferred between children or family members. As education costs continue to rise, over-funding is not a concern.

Another valuable resource for education saving is UTMA plans. UTMA plans are custodial accounts parents can open for children. They are open architecture, meaning the money can be invested however you wish. The funds are then gifted directly to the child at age 21.

 

Lonny Greenberg Lonny Greenberg is a senior advisor at Singer Xenos Schechter Sosler Wealth Management. As a Certified Financial Planner™ and a member of the SX Investment Committee, Lonny works with select clients who value his candid guidance and the lifelong relationship he forges, both as a confidant and steward of their financial future.